What we think we know about what Microsoft isn’t saying about the Xbox One

We parse the reports on used games, online connections, and privacy concerns.

For all of the things Microsoft has revealed about the Xbox One this week, the company has evaded and dismissed just as many important questions and concerns about the console. In an effort to clear the air, we've pieced together the best available information on three of these important issues while we wait for Microsoft to offer more clarification.

What is going on with used games on the Xbox One?

The official word: All Microsoft is willing to say on the matter officially is that it is "designing Xbox One to enable customers to trade in and resell games." Past that, everything we know about the Xbox One's used game handling is based on vague and often conflicting reports from various sources.

What we know: Here's the situation to the best of our understanding: first off, a Microsoft' spokesperson told Develop that "on the new Xbox, all game discs are installed to the HDD to play." That means that there needs to be some mechanism to prevent a single retail disc from being installed and made playable on hundreds or thousands of Xbox One systems.

This could be as simple as the current method on the Xbox 360, which requires the disc to be in the system even if the game is being played from an installed hard drive copy. However, a report from Wired suggests this isn't how things will work on the Xbox One. That report lays out a scenario where a user installs a game on their own system and then takes the disc to a friend's house and pays a fee to install it on a second system, allowing both people to play the game.

It's still unclear what that fee would be, but since both copies of the game would still work, it sounds likely that the second player would in effect just be paying to buy a secondary copy of the game that they would own forever. No one will be forced to buy a second copy in this situation, though: "I can come to your house and I can put the disc into your machine and I can sign in as me and we can play the game," Microsoft's Phil Harrison explained to Eurogamer. Microsoft has also said that users will be able to easily share a disc across many users in a single household.

But none of this really gets into the specific situation of a used retail game, which would by necessity require somehow invalidating the copy installed on the first owner's system. On that, Microsoft has continually said that it will be possible, but the company remains extremely cagey on the specifics. "We will have a system where you can take that digital content and trade a previously played game at a retail store," Harrison said in that same Eurogamer interview. "We're not announcing the details of that today... Our goal is to make it really customer-centric, really simple, and really understandable, and we will announce those details in due course."

The latest twist in this whole mysterious business comes from MCV, which says it has information from anonymous "key retail partners" that have been briefed by Microsoft. As the site describes it, Xbox One owners will only be able to trade games in to retailers who are hooked up to Microsoft's Azure-powered pre-owned database, which will then wipe the original installed game from the original owner's hard drive through the cloud. When the game is then resold, both Microsoft and the publisher would also be able to take some percentage of the resale price, removing what many publishers consider a major problem with pre-owned sales.

(UPDATE: Microsoft community manager Larry "Major Nelson" Hryb has published an official response to MCV's report calling the information in it "inaccurate and incomplete." Meanwhile, Eurogamer is saying that its own sources confirm the basic gist of MCV's report.)

While this is all still unconfirmed, it sounds entirely plausible, and it fits into reports that the Xbox One may have to check in with online servers periodically for some unknown reason (see below). All we can say for sure is this: playing a used game on the Xbox One is going to be more complicated than the current system of simply popping any disc into any system and playing it.

So what’s the deal with an Internet connection being “required”?

The official word: The dictates from Microsoft say that the Xbox One "does not have to be always connected, but Xbox One does require a connection to the Internet." But that only introduces more questions: what is the Internet connection actually required for, and how frequently does that connection have to be available if it's not "always" needed?

What we know: Harrison may have accidentally spilled the beans on this in an interview with Kotaku in which he was asked, "If I’m playing a single player game, do I have to be online at least once per hour or something like that? Or can I go weeks and weeks?" Harrison responded, "I believe it’s 24 hours," meaning players would have to connect at least once a day.

Microsoft quickly backtracked on that statement, telling Polygon that Harrison's statement was just one of many "potential scenarios" that Microsoft has yet to confirm. But it only makes sense that users who want to resell their games will need to check in online somehow in order to confirm that the disc-free install on their system is no longer valid. And it makes sense that the system would have to make that check relatively frequently to be sure that you aren't selling discs for games you installed long ago.

So even though Microsoft doesn't want to discuss details, it's pretty clear that users without high-speed Internet will be, at best, extremely limited in how they can use the system.

Is the new Kinect really always watching me?

The official word: Here are the facts. One, the Xbox One is designed to be "always on"; even when you turn it off, it just switches to a low-power state where it can download system and game updates and listen for certain Kinect voice commands. Two, the new Kinect, which comes packaged with the system, has to be connected to the system in order for the Xbox One to function.

What we (kind of) know: Some people have combined these two facts into a concern that Microsoft has created a system designed to constantly monitor its users while they run around naked in their living rooms or something. And it's true; unless you unplug the Kinect and/or the Xbox One when you aren't using it, there is at least the theoretical potential for someone to be constantly watching you through the Kinect (even when the lights are off, thanks to the new camera's IR night-vision mode).

Of course, Microsoft has pushed back strongly against these conspiratorial concerns. "Microsoft has very, very good policies around privacy," Harrison told Eurogamer. "We're a leader in the world of privacy, I think you'll find. We take it very seriously. We aren't using Kinect to snoop on anybody at all. We listen for the word 'Xbox on' and then switch on the machine, but we don't transmit personal data in any way, shape, or form that could be personally identifiable to you, unless you explicitly opt into that."

Of course, that's what they would say if they were planning on installing a secret spy network that lets them monitor millions of peoples' every move without their knowledge. Still, it seems to us that such a system would be both quickly sniffed out by tech-savvy users monitoring their Internet traffic (for, say, streaming video/audio data sent out by their Kinect without their consent), and it would be so disastrous for Microsoft's public image that they'd never even take the risk.

That said, there are some legitimate concerns to having an ever-present, always-on camera in your living room watching and listening to you while you use the Xbox One. The most immediate involves how the Xbox shares its data with marketers and content owners. Microsoft can talk about anonymization and privacy protections all they want, but the ability for third parties to access data on exactly what you are doing in front of your Xbox One has some creepy implications.

Take, for example, this Microsoft patent for a system that would allow a movie studio to charge a different price based on how many people it detects are actively watching a downloaded movie. It sounds like a ridiculous "feature" for Microsoft to implement (and one that would quickly send users scrambling to download movies on other, camera-free hardware), but it could also be used as a bargaining chip to, for instance, get a studio to release a downloadable movie to Xbox One screens earlier than others.

The other major privacy concern here is hacking. If someone manages to figure out how to get through Microsoft's security, they could theoretically have a live, 3D video feed of every Xbox One owner at all times. Then again, we already live with and manage this kind of concern for our laptops, our tablets, and our smartphones. Why should our game consoles be any different, right?

So unless there's some way for us regular-Joe users to hook into that Azure system, what Microsoft is killing here is not the Gamestop used rack but owner-to-owner sales of used games. I can still trade my copy of Call Of Duty: Dogs to Gamestop for ten dollars, so they can sell it for forty, but I can't cut out the middleman and sell it on Amazon or eBay for thirty.

I can certainly see hackers, especially people hacking others they know. But the FBI? Also probably on people they are actively watching. But everyone? I think processing that much video to a level of accuracy that would do more the help rather than hinder information gathering is beyond the limits of current technology.

tl;dr: The FBI isn't going to spy on you through your Xbox because you're unimportant. If you were important they'd already be spying on you. Keep an eye out for your script kiddie friends.

"Microsoft has also said that users will be able to easily share a disc across many users in a single household."

Sure, on the same xbox, but we currently have 3 360's. It would be a pretty big dealbreaker to have to buy a game for every single xbox. They may get around this with the cloud connected profiles, but it may not be worth it if it's more of a hassle than just moving the disc around.

Edit - let me rephrase - It seems like this could easily turn into a, Hey spend a little more and add a keyboard and mouse and unlock Office and other applications, but you don't actually control the hardware or information or have the ability to understand whats going on with the systems. Its closed. I can totally see with x86 MS offering the xbox as a living room computer, locked down.

I have never owned an XBox, and don't plan on buying the One. But as a suggestion to folks concerned about privacy around the Kinect - a group I would consider myself a part of if I were to own one - couldn't you get around the issue by putting a blanked over it when it's not being used? Or, I assume there must be some sort of hard power switch in the back of the unit; power it down that way.

The sensor bar of the Wii was an annoyance for the month I played the thing. If I wanted to move it or bring to a friends house, you had to bring that stupid sensor bar and cord with you: even when you weren't using those God awful motion controls (opting for GC controllers instead). That lack of easy portability played a role in me using the device less and less. It was an annoyance to always need the console connected to that sensor, and seems to me the One will suffer from the same annoyance (you need it connected to the Kinect, even when Kinect not being used).

I still like the console, and think there's a ton of potential. And I think people are getting too down on them about the TV stuff. I hope the PS4 doesn't incorporate the same annoying features.

I really hope that Sony doesn't get in on this cluster fuck. I fear that kind of thing is the future but I do not have to like it. I like my ps3 because it is NOT connected. If I wanted that I would get a pc with steam. Whenever the ps3 gets updated it recently gets worse removing features and adding fun things like cinavia. I prefer a console that is as little connected as possible thank you very much.

We now have three ps3 in the family and share games a lot. This bullshit would be an effective game price hike by 3. Xbox is pretty much dead to me. First kinect now this. They could only make it less appealing by adding a electro shock feature.

yeah. not impressed. probably wont be getting an xbox one. Im gonna have to look into what my options are gonna be whether or not im even interested in the PS4(havent even looked at it yet) or go get a wii U(ive got 2 kids so this might work out). Or just go back to PC gaming, but that limits my gaming time/needing to get a PC. or whether im just gonna stick with the XBOX/Wii and any games i can download on my tablet.

"We're not announcing the details of that today... Our goal is to make it really customer-centric, really simple, and really understandable, and we will announce those details in due course."

With all due respect, GOG has figured out "customer centric". No sign ins, no hoops, no DRM crap: just binaries. Until you get that, it is all just smoke and mirrors, and spending millions of dollars on figuring out how to make life harder for the gamer.

It's absurd that Microsoft even has to mention that it is "designing Xbox One to enable customers to trade in and resell games." Really, it's almost like a car manufacturer saying that they're designing next year's model to use gasoline. It should really just be a given, and that they're saying it all really doesn't bode well.

So Microsoft has never been capable to avoid piracy with Windows, Office and ALL of their products and suddendly they think that they'll control it on XBone? Good luck with that.

Microsoft never have been against piracy. Piracy is what have made MSFT the biggest software company in the world.Ordinary Joe pirate windows home + office. When he comes to work he knows how to use Windows+Office = companies buys Windows/Office. And its the corporate market that generate MSFT huge profits. Especially their insane software/Select/Volume agreements.

Thats how MSFT killed the diskless clients and JAVA stations in the late 90is. People seems to forget that most computers where diskless clients using Xservers back then. Local "cloud" over 10 years before the cloud. Network file system is something that have been used for 20 years on real computers.

Well. they pretty much cured me of wanting an x-box one. I never liked the kinect and I damned sure don't want to have on that has to be attached to the machine to run and always on.

I'll stick to gaming on my pc and my android.

Same here. Its one thing to have a camera on a laptop that I can control the software to, uninstall, or tape over, and the laptop works perfectly fine without it, but its completely different on a closed console that I have no control over outside of unplugging the camera and won't work until I plug the camera back in.

Whether MS actually violates my privacy or not isn't relevant, the fact is that they could. I value my privacy more than their console. I won't give them an opportunity to, and most definitely won't pay them for it.

Umm... wtf? I live in Alaska, electricity is extremely expensive here. Stores constantly run out of power strips (with switches), because people here MUST turn off their power when not using a device. Or they will face electric bills near $600. The usual electric bill is $312, for your comparison. And all this is in the Capital. Electricity is much worse in most cases. (Anchorage and Fairbanks are excluded as they are the minority).

Umm... wtf? I live in Alaska, electricity is extremely expensive here. Stores constantly run out of power strips (with switches), because people here MUST turn off their power when not using a device. Or they will face electric bills near $600. The usual electric bill is $312, for your comparison. And all this is in the Capital. Electricity is much worse in most cases. (Anchorage and Fairbanks are excluded as they are the minority).

Smooth play Microsoft, get a clue.

Outside of very simple appliance there is not a product that truly "off". This low state mode is more then likely way less then your TV or PS3 or 360.

It's absurd that Microsoft even has to mention that it is "designing Xbox One to enable customers to trade in and resell games." Really, it's almost like a car manufacturer saying that they're designing next year's model to use gasoline. It should really just be a given, and that they're saying it all really doesn't bode well.

At the same time: Its insane that MSFT/Sony/Apple don't allow us to install the stuff we want on our own hardware. If I have an Xbox One, its mine! If I want to install Linux or anything else on it its my business. But no... We don't own our own hardware anymore. Its illegal to modify our own hardware.

Studies have shown that piracy hurts movie/game/software industry by 5%.

Same thing is with used games. They software companies simply don't understand how economics work. People have X amount of money. Somehow all other markets can handle a second hand market but not the software market. Somehow the software market believe that one second hand sold game means one less sold new game. Economy does not work like that.

If MSFT/Sony had some self criticism they should stop with the insane 60 dollar price and aim for mass market. Epic games make more money on their 1,99dollar iOS games then their 60 dollar games. Its better to sell tens of millions one dollar games then one-two million 60 dollar games where Sony/MSFT+Retailer take a 50%+ cut and the game company gets less then 50%.

The MSFT/Sony tax on games where "justified" before when they subsidised the consoles hundred of dollars. PS4/Xbox1 will be unsubsidised since its crappy X86 SoCs in them.

Has Microsoft announced whether the new Kinect will use USB 3.0? Or will it use 2.0 like the original kinect?

Custom proprietary connector, as shown in the thousands of pictures on the web and written about in many articles not read by lazy people like you.

But... But.... You need lazy people like him to continue your self-righteous, pompous, mock-magnanimous indignation. Without him, I doubt you could exist. You might self implode from having no one to loathe. Be careful what you wish for. The irony of your nick and the reply to the post were too tempting for me. =D

For me the used game thing really comes down to how big that fee is for the second install of the game. If we're talking $60 to install a 4 year old game that your friend gave you the disc for, then yeah, that's a disaster. If we're talking about something that follows Steam's pricing model then it could be quite convenient. Also, the disc seems pretty obsolete if its just installing to the HDD anyway, might as well just buy it from an online digital only store.

However, the user also needs some way to deauthorize his system so he can give the disc to a friend and let him install without getting dinged again. It sounds like Microsoft wants to double dip in this situation, and that's not cool. If I'm deauthing the game, then it should be considered "new" again. That's how discs effectively work now (assuming you can't copy them), and consumers shouldn't expect the user experience to be worse with the new technology, especially not when it has the power to make it so much better.

That said, I've never owned anything calling itself an XBox, so I really don't have a dog in this fight. I just know crap when I see it.

I remember everyone being nervous about WiiConnect24 back in the day. So I plugged mine into a auto master/slave power strip: when the TV on the master outlet is put in standby, the strip cuts power to the slaves, so all the speakers, receivers, consoles, etc. also turn off.

The only thing that ended up being always-on was the cable box (when I had cable) since it took five minutes to boot up.

Kyle Orland / Kyle is the Senior Gaming Editor at Ars Technica, specializing in video game hardware and software. He has journalism and computer science degrees from University of Maryland. He is based in the Washington, DC area.